Money

China to issue 20b yuan e-savings bonds in Oct

(Xinhua)
Updated: 2010-10-08 16:27

BEIJING - China's Ministry of Finance (MOF) said on Oct 8 that it would start issuing two batches of electronic savings bonds later this month with a total value of 20 billion yuan ($3 billion).

One batch worth 10 billion yuan had a term of one year, with a fixed annual interest rate of 2.6 percent, said the MOC in a statement on the its official website.

HK prepares for global yuan Related readings:  China to sell 20b yuan short-term T-bonds next week  China to issue 10b yuan of book-entry discount T-bonds next week

The other batch of three-year bonds is worth 10 billion yuan, with a fixed annual interest rate of 3.73 percent, according to the statement.

The two batches of bonds would be issued from Oct 15 to Oct 28, with the interest to be calculated from Oct 15 and paid annually, said the statement.

Electronic savings bonds are seen as more convenient than other types of bonds as interest can be paid as a direct deposit into the investor's account.

Only individual investors can buy these bonds, the MOF said. The first such bonds were issued in June 2006.